Mexican Billionaire Ricardo Salinas Pliego Entangled in $400 Million Crypto Investment Fraud
Ricardo Salinas Pliego, the prominent Mexican billionaire and potential presidential candidate, has found himself embroiled in a transatlantic legal battle after losing approximately $400 million in what he describes as a "perfect fraud." The businessman, who typically invests only in his family's Grupo Elektra conglomerate, ventured into cryptocurrency during bitcoin's 2021 surge, leading to a sophisticated financial deception.
The Elaborate Scheme Unfolds
When Salinas sought to invest $400 million in bitcoin during spring 2021, he lacked sufficient liquid assets and turned to stock-lending arrangements. His Swiss financial adviser was introduced to Astor Capital Fund through a London broker, who presented the lender as having connections to the historic Astor family wealth. The broker's email claimed Astor Capital was backed by "top university endowment funds" and "family offices," creating an impression of established financial legitimacy.
The deception deepened during a video conference where a man identifying himself as Thomas Astor-Mellon, claiming to be a descendant of the Astor family, presented himself as Astor Capital's chief executive. Appearing to call from a yacht and speaking with an American accent, he explained his firm specialized in stock-lending transactions. Another representative, Gregory Mitchell, negotiated the specific terms as managing director.
The Contract and Its Flaws
The final agreement involved up to $150 million in cash secured against approximately $416 million worth of Elektra shares, with additional funding coming from international banks. In July 2021, Salinas signed a 31-page stock-loan contract with Astor Asset Management 3, a Canadian-registered special-purpose vehicle created specifically for this transaction at his team's request for fiscal reasons.
The document bore a crowned, winged-lion seal with the Roman numerals "MVMVIII"—a meaningless date that provided the first indication something was amiss. Rather than holding the shares as collateral until loan repayment, the lenders simply sold the securities and used the proceeds to fund the loan itself while enriching themselves in the process.
A Broader Problem in Financial Markets
This case highlights significant vulnerabilities in the booming yet lightly regulated Lombard lending sector, where individuals leverage assets for loans. According to Deloitte estimates, outstanding stock in this lending category stands at approximately $4.3 trillion and has recently grown faster than broader credit markets due to increasing stock valuations.
While much Lombard lending occurs through registered, regulated institutions, borrowers sometimes get directed toward unlicensed lenders where protections depend heavily on contract interpretation. In these arrangements, lenders typically choose both the custodian holding collateral and the jurisdiction for arbitration proceedings during disputes, creating potential conflicts of interest.
The Aftermath and Legal Battle
Salinas revealed it took more than three years to fully comprehend what had transpired. When news of the fraud became public, Elektra's shares plummeted dramatically and were suspended from trading. "It was the perfect fraud," Salinas stated. "The guy took my stock, sold it, and gave me the money as a loan—Jesus, that's as bad as it gets."
The transatlantic legal fight continues as Salinas seeks to recover his substantial losses. The case serves as a cautionary tale about the risks in alternative lending markets, particularly when dealing with unverified financial institutions making grandiose claims about their heritage and backing.
Meanwhile, the individuals behind Astor Capital maintain their innocence. One representative, identified only as Sklarov in related documents, argues that what critics characterize as fraud represents merely "hard-edged lending to risky borrowers." He explicitly stated, "I certainly do not consider myself to be a fraudster," defending the transactions as legitimate financial arrangements despite the ongoing legal proceedings and substantial evidence suggesting otherwise.
